FG unveils economic plan, explains GDP fall

Vice President Yemi Osinbajo unveiled the economic programme of President Muhammadu Buhari, on Wednesday, intended to improve job creation and boost the nation’s economy.
Vice President Osinbajo, SAN, rolled out the new policy while speaking at the just concluded 45th Annual Accounting Conference of the Institute of Chartered Accountants of Nigeria, ICAN in Abuja, on the topic “Repositioning Nigeria for Sustainable Development: From Rhetoric to Performance”.
The Vice President, who identified the shortfalls of government policies under Presidents Obasanjo, Yar’Adua and Goodluck Jonathan, after making a comparative analysis of their administrations, identified investments in the social sector, including investing in the people, education, job creation, national school feeding scheme, conditional cash transfer and deflating economies of the States as indices that would boost the economy.
He disclosed that some of these ideas are already being implemented under the Buhari administration, citing the recent bailout package for the workers in the country, and some others are currently being worked out.
Prof. Osinbajo reiterated that education is basic for economic development, adding, “One of the most important interventions required in the education sector is capacity building to improve teacher quality; this programme is intended to drive teacher capacity development; boost basic education; attract talents to the teaching profession, better educated population increase economic potential for productivity.”
The Vice President explained that the All Peoples Congress, APC, “has made a commitment to provide one-meal-a day for all primary school students that will create jobs in agriculture, including poultry, catering and delivery services.”
According to him, the multiplier effects of the introduction of the scheme include 1.14 new jobs; increased food production, up to 530,000 metric tonnes, attracting investor by investment, up to N980 billion.
He also explained why the growth in the nation’s Gross Domestic Product, GDP does not seem to impact on Nigerians pointing out that the current top-down economic model as well as lack of consideration for the structure and quality of growth partly explained why despite the country’s rising GDP and foreign reserves, unemployment and poverty had remained a challenge.
He noted that growth figures “can be deceptive where the structure and quality of growth are not considered”.
He said high growth numbers could become an irony with “a top-down economic model, when the major revenue earner is extractive and the value chain is poorly developed”.
The VP further pointed out that some of the ideas on the nation’s economic revival had already been put in place by the Buhari administration, including the bailout package for the workers while some other initiatives were currently being worked out.
Prof Osinbajo further identified conditional cash transfer as another avenue for alleviating poverty adding that the programme is intended to support the 25 million poorest households to incentive vaccination, education and production.
The multiplier effects of the introduction of the programme, he noted, would include lifting millions out of poverty, putting millions into rural production and boosting rural economy.
He stressed the need for ensuring ease of doing business, the need to improve the power sector; have one-stop shop for approvals; innovation and fighting piracy; diversifying the economy in agriculture, self-sufficiency in rice and wheat, staples production, manufacturing, entertainment and technology.
On the power sector, he said, “Despite the challenges, there have been measurable improvements over the past three months (June to August 2015). A 26 per cent increase in operational generation capacity (June to August 15, 2015 compared to January to May 2015); decrease in pipeline vandalism boosting gas supply; a 10 per cent reduction in transmission losses (June to July 2015 compared to January to May 2015); reduction in red tape to remove delays blocking the 450MW Azura-Edo IPP and the 500MW Exxon Mobil Qua-Iboe IPP; the imposition of a September 2015 deadline for the submission of the Discos’ revised tariff trajectories.”
Earlier, the President of ICAN, Chief Samuel Olufemi Deru, commended the vice-president for his commitment and for being able to attend the programme in person.